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The interesting thing about these direct list IPOs is that if you have confidence your investors will hold, you don't need the bank for stability, you have stab
by neom 8y ago
The interesting thing about these direct list IPOs is that if you have confidence your investors will hold, you don't need the bank for stability, you have stability as a result of such low volume. I'm no pro but I think the real risk is introduced when you don't know your investor base well, hence traditional underwritten IPOs have worked well. If the company doesn't need to raise money, seems like a fine way to let the little guys find liquidity. Will likely follow a similar chart as $ESTC.
- drewr 8y agoNot sure if the comments were supposed to be connected, but just to be clear, Elastic NV (ESTC) did a traditional IPO. Spotify was the first to do this direct IPO and Slack would be the second.
- neom 8y agoYah sorry, I started my thought about small cap IPOs that I think have similar revenue and then made a disconnected point, thanks for clarifying.
- lmm 8y agoMost companies need to sell themselves to investors - that's part of what the "roadshow" is about. Slack is a lot more visible than most B2B companies - people will be lining up to buy their shares without needing a banker to sell them on the company, in a way that wouldn't be the case for many businesses.